NINGBO GAOTRON MAGNETIC INDUSTRY CO.,LTD , https://www.gaotronmagnet.com
NESQUEHONING, PA. – The news spread quickly through the valley: the firetruck factory was shutting down. Nearly 400 workers would soon find themselves unemployed come April. After 75 years in operation, KME was calling it quits. This came as a heavy blow to a town already accustomed to setbacks. The coal jobs had long disappeared, and the textile mills had moved overseas decades ago. But Nesquehoning still clung to its identity through KME, with firetrucks rolling out of the factory gates, adorned with lights, sirens, and gold-leaf lettering.
Ironically, in many ways, KME's closure seemed to happen at a somewhat opportune moment for its employees. The labor market was booming. Companies everywhere were scrambling to hire. Outside the KME factory, nestled in the Pocono foothills, the roads were peppered with "Help Wanted" signs. Yet, there was something intangible that was being lost—something harder to quantify.
Across the country, workers have been quitting their jobs at unprecedented rates during the pandemic, with manufacturing workers leading the charge, according to federal statistics. Many factory jobs, after years of stagnant wage growth, now offered comparable pay to service sector positions. And despite these changes, companies continued to hold significant sway over their employees.
At KME, the appeal of working for the hometown company had been waning for several years. Ever since a private equity firm acquired the company from a local family, it became apparent that blue-collar jobs like those at KME were being streamlined out of existence. The fate of KME was no longer in local hands after it was sold in 2016; the new owners took it public just a few months later.
Today, KME is merely one of six firetruck brands under the umbrella of REV Group. Last fall, executives announced that the Nesquehoning plant would close, with production shifting to other states.
KME—or Kovatch Mobile Equipment—got its start when Sonny Kovatch returned from the Army and opened a small garage back in his hometown in 1946. He expanded into a dealership and began making trucks. Over time, he added oil-refueling trucks and fire engines to his repertoire. Under Kovatch’s leadership, KME became the nation’s largest private manufacturer of fire apparatus. The company catered to every need, from small volunteer departments to major urban centers like Atlanta, Boston, and Philadelphia. Los Angeles County purchased 250 firetrucks, and New York City bought nearly 100. Just a couple of years ago, KME delivered two new trucks to the D.C. fire department. Rural Pennsylvania held a special place in KME’s heart.
At its peak, KME’s world headquarters in Nesquehoning employed over 700 people in a town of just 3,300. When times were good, locals knew to avoid the roads around 3:30 p.m., when the day shift ended. The influx of workers supported the town’s three gas stations and a small grocery store—amenities that might not have existed without KME.
Despite its contributions, the town still faced challenges. Poverty persisted, and some homes along the main road showed their age, with worn-out porches and faded siding. Churches dwindled from six or seven to two or three, and neighborhood bars became fewer. Yet, KME played a crucial role in sustaining the community. It sponsored the local Anthracite Little League, with its name emblazoned on jerseys and displayed on outfield banners. A scholarship fund was established in honor of Sonny Kovatch, and the family donated funds for new baseball bats and football helmets. They even helped refurbish the high school’s weight room.
The company’s success felt like a buffer against the decline of the coal industry and the town’s isolated location far from major highways. Local leaders had tried various initiatives to attract new industries, but none matched the impact of making firetrucks.
Employees often stayed at KME for years. Craftsmen honed their skills, and painters ensured the trucks shone. The work remained engaging because KME wasn’t run like a typical assembly line. Bends in water pipes were done by hand, not robots. Workers learned diverse skills instead of repetitive tasks. When KME was family-owned, a job there was seen as something to cherish.
This pride trickled down to the workers’ children as well. Teachers noticed it, and the school district relied heavily on KME for its tax base.
The repercussions of the factory’s closure were still unfolding. Already, the Panther Valley School District was struggling. Its six-year college graduation rate hovered below 12%, and despite having one of the state’s highest property tax rates, the district remained severely underfunded. It joined several others in suing the state over education funding.
Even as property assessments rose in 2020, the amount of tax revenue going to schools dropped as many properties fell into disrepair.
In 2015, KME secured a prestigious contract to supply and service over 90 pumpers to the Fire Department of New York—the nation’s largest. Winning this contract was significant—it validated the company and boosted the town. However, just a year into the NYC contract, the Kovatch family announced they were selling. The exact price remains undisclosed. By the time of the sale, Sonny Kovatch had been deceased for four years, and his son, John Kovatch III, oversaw operations.
The new owner, REV Group, was a relatively new entity formed by the private equity firm American Industrial Partners to manage the specialty vehicle manufacturers it had acquired. A few months after acquiring KME, REV Group went public in a $275 million initial public offering.
REV Group’s track record could be summarized by a graphic in its 2021 annual report titled “A History of Consolidation.†Based in Brookfield, Wisconsin, the company now owns 17 firms.
In recent years, REV Group struggled financially with KME. It lost $1 million a month over the last two years trying to turn the company around. This proved to be a cultural clash, according to workers and officials in Nesquehoning. REV implemented a traditional production line with increased automation. While this made business sense—cutting costs by simplifying tasks—it clashed with what made KME unique.
The company began outsourcing some service work and wasn’t shy about firing staff. In 2019, it laid off 15% of its workforce. In August, REV announced plans to shut down the Nesquehoning plant by April, offering $5,000 bonuses to keep workers on board until then.
This story captures the complexities of modern industrial shifts and their ripple effects on communities.